Amazon's Plans May Hurt UPS, FedEX

10/5/2017 2:46 PM ET

Online retailing behemoth Amazon.com Inc. (AMZN) is reportedly testing its own delivery service. The news had a negative effect on the shares of Amazon's long-time delivery partners United Parcel Service Inc. and FedEx Corp.

According a report in Bloomberg, citing people familiar with the plan, Amazon is experimenting with a new delivery service intended to make more products available for free two-day delivery.

Amazon is calling the project Seller Flex and plans to began on a trial basis this year in West Coast states with a broader rollout planned in 2018. Amazon had started its own delivery service two years ago in India.

Amazon will also oversee pickup of packages from warehouses of third-party merchants selling goods on its website and their delivery to customers.